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Since the satisfaction of either of the two "disallowance"
tests will prohibit the deduction whether or not either of the
two "allowance" tests is met, the analysis of the Court will
begin with the disallowance tests of section 1.162-5(b)(2) and
(3), Income Tax Regs.
Petitioner, in advancing her argument, focuses on the
similarities between her duties as a financial analyst and those
of the associates at the investment banking firms of M-L and
James. She characterizes both positions as "investment banking"
positions. The fact that an individual is already performing
service in an employment status, however, does not establish that
she has met the minimum educational requirement for qualification
in that employment. Sec. 1.162-5(b)(2)(i), Income Tax Regs. The
minimum education necessary to qualify for a position must be
determined from a consideration of such factors as the
requirements of the employer, the applicable law and regulations,
and the standards of the profession, trade, or business involved.
Davidson v. Commissioner, T.C. Memo. 1982-119.
Although the duties of the analyst and the associate
overlapped, the financial analyst position was, at both M-L and
James, a subordinate temporary position lasting for a maximum of
3 years. The associate position at both companies was a
permanent career position that could lead to higher level
positions in the investment banking firm. The Court notes also
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